Environmental and Social Impact Assessment Non-Technical Summary - Amur Gas Chemical Complex (Svobodnensky District, Amur Region)

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                                       Environmental and Social
                                       Impact Assessment

                                       Non-Technical Summary
                                       Amur Gas Chemical Complex
                                       (Svobodnensky District, Amur Region)

                                       Data: 30 June 2020
                                       Project No.: 0536221

The business of sustainability
Environmental and Social Impact Assessment Non-Technical Summary - Amur Gas Chemical Complex (Svobodnensky District, Amur Region)
Document Details

 Document title              Environmental and Social Impact Assessment

                             Non-Technical Summary
 Document subtitle           Amur Gas Chemical Complex (Svobodnensky District, Amur Region)
 Project No.                 0536221
 Date                        30 June 2020
 Version                     1.0
 Author                      ERM Eurasia
 Client Name                 Amur GCC LLC

Document history
                                                                   ERM approval to issue
Version        Revision      Author          Reviewed by           Name          Date                Comments
Draft          1.0           Svetlana        Alexandra             Sergey        30.06.2020          First revision for
                             Komarova        Leman                 Bourtsev                          Lender’s and
                                                                                                     ECA’s comments

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Environmental and Social Impact Assessment Non-Technical Summary - Amur Gas Chemical Complex (Svobodnensky District, Amur Region)
Signature Page

30 June 2020

Environmental and Social Impact
Assessment

Non-Technical Summary
Amur Gas Chemical Complex (Svobodnensky District, Amur Region)

  Sergey Bourtsev                                                                         Alexandra Leman
  Project Director                                                                        Project Manager

ERM Eurasia Limited
123001, Moscow, Trekhprudny Pereulok, 11/13 building 3

© Copyright 2020 by ERM Worldwide Group Ltd and/or its affiliates (“ERM”).
All rights reserved. No part of this work may be reproduced or transmitted in any form,
or by any means, without the prior written permission of ERM.

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Environmental and Social Impact Assessment Non-Technical Summary - Amur Gas Chemical Complex (Svobodnensky District, Amur Region)
ENVIRONMENTAL AND SOCIAL IMPACT ASSESSMENT                                                                                                          INTRODUCTION

NON-TECHNICAL SUMMARY
Amur Gas Chemical Complex (Svobodnensky District, Amur Region)

CONTENTS

CONTENTS.............................................................................................................................................. I

ACRONYMS AND ABBREVIATIONS ................................................................................................... II

2.       ENVIRONMENTAL IMPACTS ..................................................................................................... 8
         2.1         Overview of the Environmental Impacts......................................................................................... 8
         2.2         Air Quality Impacts ......................................................................................................................... 9
         2.3         Greenhouse Gases Emissions .................................................................................................... 10
         2.4         Noise ........................................................................................................................................... 11
         2.5         Impacts on geology and groundwater .......................................................................................... 12
         2.6         Impacts on surface water ............................................................................................................. 13
         2.7         Impacts on topsoil ........................................................................................................................ 14
         2.8         Impacts on vegetation .................................................................................................................. 15
         2.9         Impacts on wildlife ....................................................................................................................... 16
         2.10        Impacts on Ecosystem Services .................................................................................................. 17

3.       SOCIAL IMPACTS ..................................................................................................................... 18
         3.1         Socio-economic Impacts .............................................................................................................. 18
         3.2         Community Health and Safety ..................................................................................................... 19
         3.3         Land Use ..................................................................................................................................... 20

4.       ACCIDENTS AND EMERGENCY SCENARIOS ....................................................................... 21

5.       CUMULATIVE IMPACTS ........................................................................................................... 22

6.       DISCLOSURE ............................................................................................................................ 23

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Environmental and Social Impact Assessment Non-Technical Summary - Amur Gas Chemical Complex (Svobodnensky District, Amur Region)
ENVIRONMENTAL AND SOCIAL IMPACT ASSESSMENT                                                               INTRODUCTION

NON-TECHNICAL SUMMARY
Amur Gas Chemical Complex (Svobodnensky District, Amur Region)

ACRONYMS AND ABBREVIATIONS

Name                    Description
AGCC                    Amur Gas Chemical Complex
AGPP                    Amur Gas Processing Plant
BAP                     Biodiversity Action Plan
CO                      Carbon monoxide
CO2                     Carbon dioxide
EAP                     Environmental Action Plan
EBD                     Extended Base Design
ESIA                    Environmental and Social Impact Assessment
ESMP                    Environmental and Social Management Plan
ESMS                    Environmental and Social Management System
FEED                    Front End Engineering Design
GHG                     Greenhouse Gases
ha                      hectare
IFC                     International Finance Corporation
km                      kilometre
KTPA                    Thousand tonnes per annum
LAO                     Linear Alpha-Polymers
LARP                    Land Acquisition and Restoration Plan
LPG                     Liquefied Petroleum Gases
MFCU                    Multi-Fuel Cracker Unit
Mt CO2e                 Million tonnes of carbon dioxide equivalent
MTPA                    Million tonnes per annum
NO2                     Nitrogen dioxide
NOX                     Nitrogen oxides
NTS                     Non-Technical Summary
OAO                     Open Joint Stock Company
OPL                     Overhead Power Line
PE                      Polyethylene
PM                      Particulate Matter
PP                      Polypropylene
SO2                     Sulphur dioxide
TWC                     Temporary Workers Camp
UI&O                    Utilities, Infrastructure and Offsites
WHO                     World Health Organization
WRF                     Weather Research and Forecasting

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Environmental and Social Impact Assessment Non-Technical Summary - Amur Gas Chemical Complex (Svobodnensky District, Amur Region)
ENVIRONMENTAL AND SOCIAL IMPACT ASSESSMENT                                                               INTRODUCTION

NON-TECHNICAL SUMMARY
Amur Gas Chemical Complex (Svobodnensky District, Amur Region)

1.            INTRODUCTION

This document is a Non-Technical Summary (NTS) of the Preliminary Environmental and Social
Impact Assessment (Pre-ESIA) Report for the Amur Gas Chemical Complex (hereinafter referred to
as “the Project”).
The purpose of the NTS is to provide the public with simple and accessible basic information on the
Project and the outcomes of the Pre-ESIA.

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Environmental and Social Impact Assessment Non-Technical Summary - Amur Gas Chemical Complex (Svobodnensky District, Amur Region)
ENVIRONMENTAL AND SOCIAL IMPACT ASSESSMENT                                                           PROJECT OVERVIEW

NON-TECHNICAL SUMMARY
Amur Gas Chemical Complex (Svobodnensky District, Amur Region)

2.            PROJECT OVERVIEW

Amur Gas Chemical Complex (Amur GCC) Project will produce polymers of various grades by
processing the ethane fraction and liquefied petroleum gas supplied from the Amur Gas Processing
Plant (Amur GPP).
The designed annual capacity of the Amur GCC is preliminarily estimated at 2.3 MTPA of
polyethylene and 0.4 MTPA of polypropylene. Feedstock for Amur GCC (up to 2 MTPA of ethane, 738
KTPA of propane, and 362 KTPA of butane fractions) will be supplied under an agreement with
Gazprom.
To date, the front end engineering design (FEED) phase of the Amur GCC Project has been
completed and the Project configuration, composition, and capacity of process units have been
determined. The design documentation for the process units is being developed based on the
licensors' extended base designs (EBD): Linde, Univation Technologies, Chevron Philips, and Axens.
The main Project site is located in Zheltoyarovsky Rural Council, Svobodnensky Municipal District,
Amur Region.

The Project includes the following groups of facilities:
    Gas chemical complex within the boundaries of the Site, which consists of main processing units
     and Utility, Infrastructure and Offsites (UI&O);
    AGCC external infrastructure facilities located outside of the Site.
Ethane and LPG will be supplied to Amur GCC via inter-plant industrial pipelines with the connection
point located at the southwestern boundary of the Amur GPP site.

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Environmental and Social Impact Assessment Non-Technical Summary - Amur Gas Chemical Complex (Svobodnensky District, Amur Region)
ENVIRONMENTAL AND SOCIAL IMPACT ASSESSMENT                                                           PROJECT OVERVIEW

NON-TECHNICAL SUMMARY
Amur Gas Chemical Complex (Svobodnensky District, Amur Region)

Fuel gas will be supplied via a buried gas pipeline from the 'Power of Siberia' pipeline. The tie-in point
will be located 5.5 km north of the AGCC Site.
Technical/ process water for the Project needs will be supplied from a surface water intake that will be
built 10 km southeast of the Site, on the right bank of the Zeya River. The Site will be connected with
the water intake by two water lines, overhead power line (OPL), and communication lines. An access
road will connect the water intake site with Highway R297 ('Amur'), located 1 km eastward.
Utility and drinking water supply will be provided from artesian wells that will be built 2 km west of the
Site boundary. Water from the wells will be supplied to the Site via two buried water lines. In addition
to the water lines, the artesian wells will be connected to the Site via other utilities, e.g. OPL,
communication lines, and an access road.
Treated effluents from the Amur GCC will be transferred via two buried collector pipes to a filter outlet
for discharge into the Bolshaya Pyora River 4 km southwest of the Site
Construction workers will be accommodated in a temporary workers camp (TWC). The TWC site and
associated services will be adjacent to the southern boundary of the Site.
Power supply during construction will be provided from the Stroitelnaya Substation 220/10 kV that will
be built 1 km south of the Site, including a 220 kV OPL to the point of connection to the 220 kV power
line which passes 0.5 km further south.
Large-size cargo items for construction of the Amur GCC will be delivered by water and unloaded at a
temporary wharf on the Zeya River, 9 km southeast of the Site. A temporary wharf for the Amur GPP
project is located there too.
Railway station Zavodskaya-2, located 6 km south-west of the Site and built as part of the Amur GPP,
will be expanded for the Project's purposes.
The Amur GPP Project also provides for the construction, along the southeastern boundary of the
Site, of a branch railway connecting Zavodskaya and Zavodskaya-2 railway stations and an access
railway to the Amur GCC.
The Site will be connected with the nearest highways by access roads. These roads will be used
already during the construction phase.
The Project's infrastructure facilities include a housing estate in Svobodny for the accommodation of
personnel during the operation.

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Environmental and Social Impact Assessment Non-Technical Summary - Amur Gas Chemical Complex (Svobodnensky District, Amur Region)
ENVIRONMENTAL AND SOCIAL IMPACT ASSESSMENT                                                           APPLICABLE REQUIREMENTS

NON-TECHNICAL SUMMARY
Amur Gas Chemical Complex (Svobodnensky District, Amur Region)

3.            APPLICABLE REQUIREMENTS

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Environmental and Social Impact Assessment Non-Technical Summary - Amur Gas Chemical Complex (Svobodnensky District, Amur Region)
ENVIRONMENTAL AND SOCIAL IMPACT ASSESSMENT                                                     IMPACT ASSESSMENT APPROACH

NON-TECHNICAL SUMMARY
Amur Gas Chemical Complex (Svobodnensky District, Amur Region)

4.            IMPACT ASSESSMENT APPROACH

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ENVIRONMENTAL AND SOCIAL IMPACT ASSESSMENT                                                           ENVIRONMENTAL IMPACTS

NON-TECHNICAL SUMMARY
Amur Gas Chemical Complex (Svobodnensky District, Amur Region)

5.            ENVIRONMENTAL IMPACTS

5.1           Overview of the Environmental Impacts
Being a large-scale petrochemical facility, the Project will be associated with typical industry-specific
environmental impacts during its construction and operational phases. This Environmental and Social
Impact Assessment study has identified and assessed the Project’s impacts to various environmental
components, including ambient air, climate, acoustic environment, surface water bodies, topsoil,
biodiversity values, geology and groundwater.
During the construction phase, the Project will be associated with the environmental issues that are
most common to most large industrial facilities. These include the following
     Air emissions from vehicles, equipment, and machinery
     Noise
     Removal of topsoil and vegetation clearance
     Alteration and loss of terrestrial and aquatic habitats
     Minor impact on the geological environment, groundwater and surface water.
During the operational phase, the environmental impacts of the Project are expected to be less
intense compared to those of the construction, for all relevant environmental components except for
ambient air and climate. Potential environmental issues associated with the Project operation include
the following:
     Air emissions
     Greenhouse gas emissions
     Noise
     Disturbance of wildlife and aquatic species
     Wastewater
     Hazardous materials and wastes
     Minor impact on the geological environment and groundwater

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ENVIRONMENTAL AND SOCIAL IMPACT ASSESSMENT                                                             ENVIRONMENTAL IMPACTS

NON-TECHNICAL SUMMARY
Amur Gas Chemical Complex (Svobodnensky District, Amur Region)

5.2           Air Quality Impacts
The Air Quality Impact Assessment for the Amur Gas Chemical Complex (AGCC) considers the
emissions associated with the operation of the Project.
A modelling analysis was conducted to evaluate ambient impacts of all applicable pollutants from the
Project for comparison with the Russian MPC and IFC/WHO air quality standards. ERM completed
the modelling analysis using the meteorological, source, and receptor information. The latest version
of the AERMOD model and associated processors were used, along with five years of meteorological
data developed from the WRF prognostic meteorological model.
The modelling shows that the peak impacts occur immediately next to the emitting sources, inside the
Project boundary and they rapidly decrease with distance. The model does not indicate excess of the
standards and the presence of major impacts off-site with the exception of NO2 and SO2 emissions.
Of note that the NO2 baseline is very likely to be overestimated and in practice it is highly unlikely that
the baseline is degraded. On this basis, the impacts beyond the site boundary are expected to be
‘small’. A more accurate representation of results would be achievable with site specific baseline
monitoring.

                        Construction                                                        Operation

 Major sources: construction works                                   Major sources: AGCC process units

 Major pollutants: NOx, SO2, CO, carbon black and suspended solids (the latter two were added together to
 represent particulate matter or PM10)

 Receptors/ areas: residential areas (Chernigovka, Yukhta-3, Dmitrievka, Yukhta, Ust-Pyora), AGPP shift camp

 Impact: Temporary dust and pollutant emissions near                 Impact: Pollutant concentrations are expected to be
 construction sites due to construction works, vehicles              below the applicable air quality standards at
 movement and onsite power generation                                receptors outside the main Project site

 Significance: Modelling hasn’t been conducted due to                Significance: Medium to High
 limited data on construction phase

 Limitations:
 ■ Limited data on construction phase;
 ■ High baseline concentrations of pollutants: air quality impacts may be overestimated;
 ■ Heights of buildings and structures are taken based on similar facilities;
 ■ Source term is based on the similar facilities;
 ■ Modeling have been conducted for the pollutants of concern (NOX, PM, CO, SO2), other pollutants have
    been scoped out.

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NON-TECHNICAL SUMMARY
Amur Gas Chemical Complex (Svobodnensky District, Amur Region)

5.3           Greenhouse Gases Emissions
Emissions if the Greenhouse Gases (GHG) have been preliminary evaluated for the Project based on
the internationally recognised methodology developed by the Intergovernmental Panel for Climate
Change (IPCC) and according to the Greenhouse Gas Protocol Corporate Standard.
The calculation has been performed based on the Project-specific data where available. Some pieces
of the Project-specific information were unviable due to the early design stage; in such cases, data
from the similar facility, the Western-Siberian Petrochemical Complex (ZapSib-2 Project), were used.
The Project will be a major GHG emitter; its annual aggregate direct and indirect GHG emissions will
comprise 1.9 Mt CO2e:

                                                    Total: 1.9 Mt CO2e

The main sources of the Project’s direct (scope 1) GHG emissions are fuel combustion (heat and
flaring) and fugitive emissions from the stationary equipment (e.g., gas venting, leaking valves, etc.).
The main source of the indirect (scope 2) GHG emissions is the consumption of the electric power by
the Project.
Being a major GHG emitter, the Project will have to quantify and report its emissions annually. It is
recommended that the Project’s performance in the field of GHG emissions and climate change
issues to be embedded into the Project’s management system.

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NON-TECHNICAL SUMMARY
Amur Gas Chemical Complex (Svobodnensky District, Amur Region)

5.4           Noise
The Project will be associated with increased noise pollution of the area caused by construction and
continuous operation of the AGCC. Noise impacts are expected to be of minor and negligible
significance both during the construction and operation. The settlements that will experience the
highest noise levels are the closest ones to the main Project site and the railway: Chernigovka and
Yukhta-3.
                        Construction                                                         Operation

    Major sources: vehicles, construction machinery and              Major sources: process equipment, ventilation and air
    equipment                                                        conditioning equipment, access motor roads, the
                                                                     10K-195 motorway, and the railway.

    Period of the maximum impact: construction, 2023                 Period of the maximum impact: not applicable, noise
                                                                     levels assumed similar during the overall operational
                                                                     phase

    Receptors/ areas: residential areas (Chernigovka,                Receptors/ areas: residential areas (Chernigovka,
    Yukhta-3, Dmitrievka, Yukhta, Ust-Pyora), AGPP shift             Yukhta-3, Dmitrievka, Yukhta, Ust-Pyora), AGPP shift
    camp                                                             camp

     Impact: no exceedance of the standards at all control           Impact: no exceedance of the standards at all control
    points                                                           points

    Significance: Negligible to Minor                                Significance: Negligible to Minor

    Mitigation measures:                                             Mitigation measures:
    ■ Application of state-of-the-art equipment and                  ■ Installation of noisy equipment in separate
       mechanisms with low noise power levels;                          buildings and open areas where no permanent
    ■ Monitoring of compliance with construction                        workplaces are in place;
       processes and procedures;                                     ■ Provision of ventilation facilities with noise
    ■ Vehicular traffic control, prevention of uncontrolled             suppressors;
       vehicular traffic, minimization of cargo                      ■ Compressors, pumps, and fans must operate in
       transportation at night where possible;                          automatic mode with remote control;
    ■ Ban on parking of construction machinery and                   ■ Workers must wear hearing protection equipment
       vehicles with running engine during prolonged                    (helmets with earmuffs) when working near
       stops and interruptions in work.                                 compressor units or other process facilities with
                                                                        high noise radiation.

    Limitations:
    ■ The AGPP impact analysis at all reference points was not performed during this stage of the assessment. A
       rough estimate can be made based on calculations performed as part of the EAP1 development only for
       reference point RP5 (Yukhta), a residential area most closely located to the AGPP. A more comprehensive
       evaluation can be undertaken at the next stage of the ESIA;
    ■ Additional noise measurements within the subject areas and the assessment of the AGPP contribution are
       required for a more accurate evaluation of the cumulative impact;
    ■ The submitted design documents do not describe the procedure and quantity of the equipment to be
       involved in train sorting at Zavodskaya-2 railway station. The scale of impact in areas adjacent to the
       railway station may be assessed differently once such equipment is taken into consideration.

1
    Environmental Action Plan. Book 0059.2018-02-4-ООС1.1

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NON-TECHNICAL SUMMARY
Amur Gas Chemical Complex (Svobodnensky District, Amur Region)

5.5           Impacts on geology and groundwater
The Project will have limited impact on geology and groundwater. The impact of the highest
significance will be associated with artesian water abstraction by the Project from Buzulinsky aquifer.
Within the Project Area the stability of the geological environment to man-made impacts is largely
determined by the resistance of groundwater to pollution. This parameter was estimated for the
exploited Buzulinsky aquifer, which is classified as reliably protected due to its deep occurrence and
overlap with a large width horizon with low filtration properties.

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ENVIRONMENTAL AND SOCIAL IMPACT ASSESSMENT                                                              ENVIRONMENTAL IMPACTS

NON-TECHNICAL SUMMARY
Amur Gas Chemical Complex (Svobodnensky District, Amur Region)

5.6           Impacts on surface water
The Project will affect the surface water bodies in various ways. A process water intake will be built on
the Zeya River, and dredging works will be made near the wharf, downstream the water intake. This
will affect the floodplain and riverbed, and will temporary increase the turbidity of the Zeya waters.
Project’s effluents during the operation will be treated and discharged to the Bolshaya Pyora River, a
Zeya’s tributary. Construction of the discharge facility will affect the floodplain and the river water
quality will be affected by the treated effluent.
                        Construction                                                         Operation

 Major sources: soil removal in watercourses during                  Major sources: water intake and sewage treatment
 earthworks, water intake and sewage treatment

 Receptors:                                                          Receptors:
 ■ River Zeya                                                        ■ River Zeya
 ■ River Bolshaya Pyora                                              ■ River Bolshaya Pyora
 ■ River Gashenka
 ■ River Rakusha
 ■ Nameless creek – right-bank tributary of the
   Rakusha river

 Impact: The main impact of the construction phase                   Impact: Wastewater outlet’s treated effluents will be
 associated with the deterioration of surface water and              the main source of changes in the hydrological and
 sediment quality will be soil removal in watercourses               hydrothermal regimes, both for the construction and
 during earthworks. Impact significance, considering,                operation periods. Due to the relatively small
 is assessed as Minor as the construction area                       discharge (3.2 % of the lowest estimated winter low
 occupies 24.8 % of the catchment area of the                        water flow rate (95% coverage) and 1.6 % of the
 Bolshaya Pyora river.                                               lowest estimated summer and autumn low water flow
                                                                     rate (95% coverage)), the impact on the hydrological
                                                                     regime is estimated as Negligible. Despite this the
                                                                     sensitivity of the Bolshaya Pyora river to temperature
                                                                     changes is high and the impact on the hydrothermal
                                                                     regime is defined as Medium.

 Significance: Negligible to Minor                                   Significance: Negligible to Medium

 Mitigation measures:
 ■ Carrying out work strictly within the boundaries of the territory allotted for the construction;
 ■ Storage of soil dumps and building materials, taking into account the absence of obstacles to normal water
    disposal from the territory of the construction site;
 ■ Sewage discharge to specialized tanks, followed by transfer to treatment facilities;
 ■ Quality control of wastewater treatment;
 ■ Temperature parameters monitoring of discharged wastewater;
 ■ Surface water monitoring;
 ■ Condition monitoring of water protection zones.
 Limitations of impact assessment:
 ■ The assessment is based on the compliance of treated water quality with the standards for aquatic objects
    of fishery importance;
 ■ Limited data on the risks of fuel and lubricants getting into watercourses;
 ■ Limited data on the risks of exposure to chlorine-containing substances during pipeline disinfection;
 ■ Pollutant discharge parameters will be specified at the next stage of the ESIA.

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NON-TECHNICAL SUMMARY
Amur Gas Chemical Complex (Svobodnensky District, Amur Region)

5.7           Impacts on topsoil
About 1,300 ha of topsoil will be stripped off during the Project sites preparation. This will represent
the most significant of the Project’s impacts on topsoil. During the operational phase, topsoil will be
mainly affected by the precipitated pollutants emitted by of the Project.

                        Construction                                                         Operation

 Major sources: site grading/ levelling, earth-moving                Major sources: precipitation of pollutants from air
 work, off-road traffic                                              emissions generated by the AGCC operation

 Major impacts: Loss of topsoil and structural disturbance of vegetation cover during land clearance and
 earthworks

 Receptors/ areas: soil on the construction site                     Receptors/ areas: not expected

 Impact: Potential adverse effects of the Project on topsoil will mainly take the form of topsoil loss and
 degradation of soils due to deposition of airborne contaminants. All expected impacts will have a local extent.

 Significance:                                                       Significance:
 ■ Topsoil loss is High                                              ■ Topsoil loss is not expected
 ■ Degradation of soil cover during the Construction and Operation phases is Low and does not require a
      separate assessment
 Mitigation measures:
 ■ Strict observance of boundaries of the territory allotted for construction and installation works;
 ■ Exclusion of un-organised travel of vehicles, machines and mechanisms with travel beyond the limits of the
    established ways of movement for them, leading to mechanical damage to the soil and plant layer;
 ■ Reclamation of lands that were seized during the construction period for technological needs, on which the
    natural vegetation and soil cover were disturbed;
 ■ Continuous linear control and monitoring of erosion, suffosion, geo-cryological, landslide processes;
 ■ Monitoring the restoration of plant communities on reclaimed land;
 ■ Parking and maintenance of construction equipment only within the boundaries of specially designated
    areas;
 ■ Refueling of machines and mechanisms, the discharge of fuels is carried out at specially designated sites;
 ■ Collection of waste oil products, engine oils, etc. in special pallets;
 ■ Rregular monitoring of soil pollution and degradation in the area of influence of construction works;
 ■ Use materials that are inert and meet environmental safety requirements during construction;
 ■ Fencing of landscaping areas with borders, excluding the flushing of soil on the road surface;
 ■ Ban on the use of faulty or unregulated equipment;
 ■ Storage of bulk materials in specially equipped temporary storage sites;
 ■ Organisation of a drainage system from pits;
 ■ Continuous linear control and monitoring of erosion, suffosion, geo-cryological, landslide processes;
 ■ Regular monitoring of gas stations to detect possible fuel leaks.
 ■ Exclusion of fuel and oil spills on the soil surface.
 Limitations:
 ■ Receptors, their value, sensitivity and susceptibility will be determined in later versions of the report once
    results of the investigations to be performed by ERM in the summer of 2020 become available. Accordingly,
    the ultimate significance of the impact will be determined at a later stage;
 ■ The severity of the impact depends on the scale of direct impacts on the soil cover. Exact extent of topsoil
    losses and structural disturbance of vegetation cover will be determined in later versions of the report once
    results of the investigations to be performed by ERM in the summer of 2020 become available and once the
    temporary and permanent land withdrawal data are provided.

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NON-TECHNICAL SUMMARY
Amur Gas Chemical Complex (Svobodnensky District, Amur Region)

5.8           Impacts on vegetation
The main impact on vegetation in the Project area will be imposed during the site preparation, when
topsoil and vegetation cover will be stripped off on the Project sites, and vegetation in the adjacent
areas will be affected by construction dust. During the operational phase, the Project’s impact will be
associated with precipitated pollutants.
Of note that a limited data on the plant communities on the Project sites was available for the
assessment. These are to be obtained by the surveys in the summer of 2020.

                        Construction                                                         Operation

 Major sources: site clearance, traffic of vehicles and              Major sources: precipitation of pollutants from air
 machinery                                                           emissions generated by the AGCC operation

 Major impacts: vegetation clearance, dust pollution                 Major impacts: pollution/ deterioration of growth
                                                                     conditions

 Receptors/ areas: vegetative cover on the                           Receptors/ areas: Yukhtinsky pine forest,
                                                                     Buzulinskaya green grove, Iversky State Nature
 construction site and in adjacent areas                             Reserve

 Impact: pollution of stems and leaves by precipitating              Impact: critical concentrations of pollutants will not be
 dust and pollutants (soot, hydrocarbons, oil products,              exceeded, but definitive conclusions can be made
 etc.) from construction machinery and vehicles                      only after obtaining the results of the summer survey

 Significance: Will be defined upon the results of the summer survey

 Mitigation measures:
 ■ Technical and design solutions (e.g. low noise equipment, equipment for treatment of emissions,
    discharges, etc.);
 ■ Compliance with rules and regulations (e.g. fare safety, speed limits, etc.);
 ■ Land Remediation (seeds of native plants, mechanical - immediately after construction, biological - as the
    first growing season following the end of construction);
 ■ Reforestation;
 ■ Support regional initiatives to conserve and increase the area of habitats of rare and protected plant
    species in the Svobodnensky District;
 ■ ESMPs, ESMS, Commitment Register, Land Remediation Plan, BAP;
 ■ Monitoring Plan.

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ENVIRONMENTAL AND SOCIAL IMPACT ASSESSMENT                                                             ENVIRONMENTAL IMPACTS

NON-TECHNICAL SUMMARY
Amur Gas Chemical Complex (Svobodnensky District, Amur Region)

5.9           Impacts on wildlife
The project will be have various impacts on terrestrial and aquatic life through alteration of habitats,
disturbance factor and potential introduction of synanthropic species.
Recipients and their value will be determined after receiving the results of surveys to be conducted by
ERM in the summer of 2020.
                        Construction                                                        Operation

 Major sources: construction works, presence of                     Major sources: operation of flares, AGCC and its
 personnel and traffic of machinery and vehicles                    facilities (noise)

 Major impacts: disturbance factor, destruction of                  Major impacts: death of birds in flare systems, death
 individual species and habitats, introduction of                   of fish in rivers Zeya and Bolshaya Pyora,
 synanthropic (domesticated or human associated)                    disturbance factor, habitat transformation
 species

 Receptors/ areas: animal populations and habitats                  Receptors/ areas: animal population of the
 within the construction site and in the vicinity                   Yukhtinsky pine forest, Buzulinskaya green grove,
                                                                    Iversky State Nature Reserve, birds flying over the
                                                                    Project site

 Prediction: most pronounced effects will be                        Prediction: in compliance with the safety
 associated with introduction of synanthropic species               requirements and the implementation of all planned
 (rats, crows, dogs, etc.) and destruction of habitats              mitigation measures environmental destruction of
 on the proposed construction site. Given the absence               living organisms is not expected. Nevertheless, it is
 of mammals listed in the Red Book, the overall                     necessary to calculate the loss compensation for
 impact will be less pronounced.                                    species such as the Amur sturgeon (Acipenser baerii)
                                                                    and kaluga (Huso dauricus) for river Zeya.

 Impact significance: Will be defined upon the results of the summer survey

 Mitigation measures:
 ■ Prohibition of certain types of activities (e.g. execution of construction work at spring nesting period,
    hunting, import and loose-keeping of dogs, etc.);
 ■ Technical and design solutions (e.g. low noise equipment, equipment for treatment of emissions,
    discharges, etc.);
 ■ Compliance with rules and regulations (e.g. fare safety, speed limits, etc.);
 ■ Release into the basin of the Zeya River of juvenile carp;
 ■ Reforestation;
 ■ Support regional initiatives aimed at the restoration of populations of rare and protected fish species, e.g.
    Kaluga and Siberian sturgeon and aimed at restoration of populations of commercial fish species;
 ■ Monitoring Plan.

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ENVIRONMENTAL AND SOCIAL IMPACT ASSESSMENT                                                           ENVIRONMENTAL IMPACTS

NON-TECHNICAL SUMMARY
Amur Gas Chemical Complex (Svobodnensky District, Amur Region)

5.10          Impacts on Ecosystem Services
Since the Project will have an impact on the ecosystems in its Area of Influence, in will also affect the
ecosystem services, i.e. the benefits that these ecosystems provide to the local communities and
business. These benefits might be of different nature and value to their users, and it the Project’s area
of influence include:
    Recreation (e.g. providing areas for leisure and outdoor recreation);
    Wild plant gathering (e.g. berry, mushroom, herbs, etc.);
    Hunting.
The Project will to some extent restrict access to recreational facilities and areas of wild plant
gathering. Loss of habitats for the Project sites and disturbance from the Project activities will reduce
hunting resources in the Area of Influence.

Since the temporary allotment areas can not be reinstated until the end of the Project’s lifespan, offset
measures should be developed, e.g. so as to compensate for the loss of biodiversity and ecosystem
services of natural habitats.

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ENVIRONMENTAL AND SOCIAL IMPACT ASSESSMENT                                                                   SOCIAL IMPACTS

NON-TECHNICAL SUMMARY
Amur Gas Chemical Complex (Svobodnensky District, Amur Region)

6.            SOCIAL IMPACTS

6.1           Socio-economic Impacts
Project will have positive and negative impacts on the local economy.
During the construction, Project will have multiplier effect in the economy through development of the
related industry sectors, creating additional jobs and tax payments to the budget. At the same time,
workers influx and road transportation will cause the increase in the load on the healthcare,
education, infrastructure and utility services in Svobodny and Svobodnensky District.
Project’s operational phase will be associated with creation of permanent jobs, development of social
infrastructure services, increase of town population, development of residential areas in Svobodny,
but also with the increased load on the healthcare facilities.

                        Construction                                                        Operation

 Impact sources: construction works, transportation,                Impact sources: new jobs, contracting, workers influx
 contracting, workers influx

 Receptors: local businesses, budget, households                    Receptors: local businesses, budget, households

 Positive impact: Multiplier effect in the economy, the             Positive impact: Creation of permanent jobs,
 development of related industries, additional jobs, tax            development of social infrastructure services,
 deductions to the budget                                           increase of town population, development of
                                                                    residential areas in Svobodny town, improving
 Negative impact: Impacts on health care, education,                economic development
 road infrastructure, utility services in Svobodny town
 and Svobodnensky District                                          Negative impact: Increased load on the healthcare
                                                                    facilities

 Mitigation measures:                                               Mitigation measures:
 ■ Priority employment of local staff, exclude                      ■ Develop a grant program for attraction of recent
    accommodation of rotational personnel in                           medical school graduates for work during the
    Svobodny town;                                                     Project construction and operational stages;
 ■ Detours for roads in Svobodny town / Construction                ■ Cooperating with the local materials suppliers and
    of temporary access road;                                          service providers.
 ■ Provide for consumer goods store, bankable
    services within the construction camp site;
 ■ Provide an alternative passage for driving cattle
    through the linear facility

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ENVIRONMENTAL AND SOCIAL IMPACT ASSESSMENT                                                                     SOCIAL IMPACTS

NON-TECHNICAL SUMMARY
Amur Gas Chemical Complex (Svobodnensky District, Amur Region)

6.2           Community Health and Safety
Large-scale projects may have significant impact on the health and safety of the local communities.
Project’s impact will be related to various factors, including workers influx, transportation, and the
overall operation of the AGCC.

                        Construction                                                        Operation

 Impact sources: construction works, transportation,                Impact sources: AGCC operation, transportation,
 workers influx                                                     workers influx

 Receptors: local residents                                         Receptors: local residents

 Impact: The movement of construction machinery                     Impact; Similar to construction, but less intensive.
 and equipment, the influx of shift workers can lead to
 health and safety risks (infectious diseases, conflicts
 and road accidents)

 The main social problems that concern local
 residents during the construction of the AGPP are the
 following:
 ■ "Residence of foreign migrants in their localities"
     (46.1%),
 ■ "Pollution of rivers and reservoirs" (42.2%),
 ■ "Increase in prices for goods and services"
     (38.8%),
 ■ "Deterioration of road quality" (35.0%),
 ■ “Littering of the territory" (23.5%).
 Mitigation measures:
 ■ Grievance redress mechanism;
 ■ Medical services, shops, leisure infrastructure in construction camps;
 ■ Code of conduct for employees of the Project should apply to contractors and subcontractor;
 ■ Participation of citizens in meetings of the public Council of AGPP/AGCC

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ENVIRONMENTAL AND SOCIAL IMPACT ASSESSMENT                                                               SOCIAL IMPACTS

NON-TECHNICAL SUMMARY
Amur Gas Chemical Complex (Svobodnensky District, Amur Region)

6.3           Land Use
Most land use issues are relevant to the land acquisition:
     Buyout of land plots:
      - 16 plots were purchased by the Amur Gas Chemical Complex (AGCC) (an area of about
      749 ha) from private land users;
     Lease:
      -   33 public plots were leased by the AGCC (an area of about 722 ha);
      -   7 public plots are pending registration (an area of 24 ha).
     Servitudes: public and private land plots
     Meetings with land owners are to be held.

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ENVIRONMENTAL AND SOCIAL IMPACT ASSESSMENT                                           ACCIDENTS AND EMERGENCY SCENARIOS

NON-TECHNICAL SUMMARY
Amur Gas Chemical Complex (Svobodnensky District, Amur Region)

7.            ACCIDENTS AND EMERGENCY SCENARIOS

The ESIA study has identified the main accident scenarios and impact receptors for the Project.
Most of the accident scenarios are related to flammable liquids on construction sites.
Accident scenarios related to flammable gases and liquids, combustible dust and corrosive
substances.
Of note that these are preliminary scenarios, and a proper hazard identification and assessment is to
be conducted.

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ENVIRONMENTAL AND SOCIAL IMPACT ASSESSMENT                                                           CUMULATIVE IMPACTS

NON-TECHNICAL SUMMARY
Amur Gas Chemical Complex (Svobodnensky District, Amur Region)

8.            CUMULATIVE IMPACTS

Cumulative impacts are those that result from the incremental impact, on areas or resources used or
directly impacted by the Project, from other existing, planned or reasonably defined developments at
the time the risks and impacts identification process is conducted.
The Projects’ area of influence is overlapped with areas of other projects. The main ones are:
    "Power of Siberia“ gas pipeline
    Amur gas Processing Complex and its associated facilities,- Amurskaya TPP, “Atamanskaya”
     GSC-7 “a”
    Objects of ОAO "Russian Railways“ near Zavodskaya-2 station
    Reconstructed health facilities in Svobodny town,
    Reconstructed transport infrastructure facilities

The main components that will be cumulatively affected by the projects are as follows:
    Air quality
    Surface water of the B. Pyora River
    Biodiversity
    Community health and safety
    Community cohesion of Ust’ Pyora rural settlement
    Social and transport infrastructure facilities

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ENVIRONMENTAL AND SOCIAL IMPACT ASSESSMENT                                                                   DISCLOSURE

NON-TECHNICAL SUMMARY
Amur Gas Chemical Complex (Svobodnensky District, Amur Region)

9.            DISCLOSURE

Hardcopies of the full ESIA package will be available in:
    The AGCC office:
     -    Svobodny town, Lenina st. 70/2
     -    Blagoveschensk, Pionerskaya street, 2
    Administration of Svobodnensky District:
     -    Svobodny town, 50 Let Oktyabrya st. 14
Hardcopies of NTS, SEP and LARP will be available in the AGCC office:
    Chernigovka rural settlement, Oktyabr’skaya str.18 V, office 9
The documents will be available for download on the Project website, to be developed.
Project hotline number is 8-800-222-04-84

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